JOHANNESBURG, Sept. 10 /PRNewswire/ -- FTSE 250-listed IG Group Holdings plc, which has a market capitalisation of pounds Sterling 1.8bn, today announced its acquisition of South African Contracts For Difference (CFD) company, IdealCFD Financial Services (IdealCFDs).
The South African operation will be known as IG Markets South Africa Limited (IG Markets).
Commenting on the development, IG Group's London-based CEO Tim Howkins said: "Our partnership with James Bishop and the IdealCFDs team stems back to four years ago when the group started supplying IdealCFDs with technology. IG Group's acquisition of this business is the logical next step in our relationship and will enable local clients to benefit from our robust trading systems, global reach and our commitment to the innovative technology which allows us to keep our costs low."
Howkins points out that, "The current market environment is well suited to CFD trading. In a period of market uncertainty CFDs give the long term investor the opportunity to hedge their existing shareholdings in a tax-effective manner, while creating significant trading opportunities for those looking to take advantage of short-term price movements."
CFDs are versatile trading vehicles, allowing users to profit from rising or falling share and index price movements without having to own the underlying instrument. These derivative instruments were originally used by institutional investors to hedge their exposure to underlying stocks, but have become increasingly popular among retail investors as both a trading and hedging instrument. CFD-related volume now forms a significant part of the turnover on the world's major stock exchanges.
IG Markets South Africa Ltd CEO James Bishop says that IdealCFDs has a long and successful track record in South Africa. "We have successfully operated for four years. Now, with the backing of the global CFD leader, we look to grow from strength to strength."
"The arrival of IG Markets in South Africa is a significant step, bringing additional credibility, security and international best practice to the South African CFD market. We are delighted to be part of a group with representation in 13 countries. South African investors will have an increased opportunity to trade in the international markets utilising offshore funds or their offshore allowances."
Bishop adds: "In addition, clients will benefit from IG Group's ongoing investment in technology in the region of pounds 20m per year. By offering two award-winning trading platforms and mobile dealing, clients will enjoy significant trading advantages."
IG Markets also has an established broker network model, thus enabling regulated brokers to participate in the expanding CFD market.
IG Group invests significantly in educating potential traders and investors on CFD trading. For more information and a free trial, go to www.igmarkets.co.za.
SOURCE IG Markets